The state of Tennessee will not extend a controversial contract with a private real estate firm and instead will throw the deal to negotiate government office space open to bidders.
The Department of General Services has posted a
request for information asking commercial real estate brokers to offer their plans to manage the state’s office leases.
The move comes after state officials decided not to extend their contract with Chicago-based Jones Lang LaSalle past February.
“Well, we’ve learned some things from the time when this contract was originally let,” said state spokesman David Roberson. “And so I think we’re better informed now than we were at that time.”
The state’s relationship with Jones Lang LaSalle began four years ago, when the firm wrote a study that suggested the state sell several of its buildings and instead lease office space from private landlords. Months later, the firm was given the exclusive right to represent state agencies when they negotiated with those landlords.
Critics said the arrangement smacked of backroom dealing.
State officials have defended the deal, and they say Jones Lang LaSalle is free to bid on the new contract.
But it’s unlikely it would become the state’s sole agent. Tennessee officials are considering spreading the right to represent state government among several firms, each with expertise in a different region of the state.
The state may also bring more of its lease management in-house. Roberson says the Department of General Services has hired four people in the last year with experience negotiating office leases.
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